Los Angeles daily herald., 1887-02-27
Financial Fear. and Facts.

A large number OF persons in view
of the contraction of the National
Bank circulation by the calling in of
the three per cent bonds on which
many OF them were permitted to issue
ninety per cent in notes, imagine that
money will be scarce for the next
year in consequence OF this withdraw
al OF circulation.
This fear is without foundation.
When bank surrenders 1900 of its
circulation to the Treasury Depart
ment it receives $1,000 in cash, so it
has 500 more than before the surren-
der, and money is made more plenty
than before the exchange.
All the three per cent bonds of the
Government will unquestionably be
paid off before the first OF July next,
and the proceeds OF all that are not
held for securing circulation OF ma
tional bank notes will swell the vol
ume OF money in the country.
The re-coinage of trade dollars will
be another addition to the currency,
and the purchase of $24 100000 OF
silver bullion will make another ad-
dition to the circulating medium OF
the country
But the greatest addition tie the
currency of the country will be the
payment by the Government of the
appropriations made by Con-
gress for the Army and Navy
the construction OF vessels OF war,
the erection OF postoffices and United
States Court rooms, light houses, for
river and harbor improvements, forti-
fications, Indians, pensions, civil and
miscellaneous business which will
doubtless amountsto over $500 ,00n,-
600 or $50, 600, 600 above the collec-
tions OF the year, SO that there will
be plenty OF money and an increase
of not less than $l50,000,000 in the
circulation OF the country.
On this showing it will be seen that
the inevitable management OF the
United States Treasury Department
will make an easy money market dur
ing all the year.
The exports OF the United States
last year we're 1866, 100000. They
will doubtless be equally as large
this year, while the imports will be
probably $780, 100000 less than the
exports and leave a money margin OF
that amount, so that it seems rea-
sonable proposition that there will be
an increase in the volume OF the cur
rency for 1887 of $3.50. 100000.
Such prospect is cheering to those
who require large sums for building
factories, railways and other great
works of public necessity and utility.
The Secretary of the United States
Treasury in his last annual report
takes a very hopeful view OF the stu
alton OF our industries and INDUCES
in the following language:
"Now, one proud fact attests the
substance of our prosperity, and is
the guaranty as we'll as proof OF our
power to hold against all competition
the markets of the United States for
everything we choose to dig or fabri-
cate or grow, and TO command and
control for our surplus products,
against all rivals, any foreign mar
ket.
"We pay to labor the highest wages
in the world. Highly-paid labor sig
nifies the most efficient labor-signi-
fies that high wages are the most
profitable wages-signifies that the
high rate is earned. The highest
wages to the laborer thus involve and
imply the lowest percentage OF labor
cost in the product. But, other
things being equal, the lowest per-
centage OF labor-cost in any product
is the guaranty that competition is
outstripped.
"Protectionists have done service |
to humanity by insisting upon the
fact that we pay to labor the highest
wages in the world. While debate
has been going on whether our high
wages were because of taxation or
despite taxation. economists have
discovered and demonstrated the cor
relative fact that labor-cost in our
products is the least in the world"